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Elon Musk loses $9 billion of his net worth as Tesla’s stock plummets

by Celia

Tesla CEO Elon Musk’s fortunes have taken a significant hit as the company’s shares stumbled following an analyst downgrade and disappointing quarterly reports from smaller electric vehicle rivals.

Tesla’s share price took a nosedive on Thursday, falling 5.5% to $210, after HSBC analyst Michael Tyndall initiated coverage on the stock with a sell rating and a price target of $133. Tyndall’s downgrade is the latest sign that investors are becoming more cautious about Tesla’s stock, which has been volatile in recent months.

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The sell rating comes at a time when Tesla is facing a number of challenges, including increasing competition from rivals, rising costs and supply chain disruptions. The company is also facing scrutiny from regulators around the world over its self-driving technology and safety concerns.

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According to Forbes, some other electric vehicle stocks are sliding, such as American electric carmakers Rivian (shares down 10% on Thursday) and Lucid (down 5%), after the pair each reported earnings that disappointed investors on Tuesday, with each company on track to burn through billions of dollars in cash this year.

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Musk, who owns about 13% of Tesla, lost $8.7 billion on Thursday, more than $7 billion more than any other billionaire, according to Forbes’ calculations. Musk remains the world’s richest person with an estimated net worth of $223.7 billion, but that is about $100 billion below his peak wealth of $320 billion in November 2021, when Tesla was valued at more than $1.2 trillion.

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